Tax Preparation Examiner Frank Ellis explains the energy tax credits now available for solar water heaters during the present tax season, on Examiner.com.
January 20, 2015 — Frank Ellis, a tax preparation and planning expert, explains the energy tax credits owners of solar water heaters can use during the 2015, 2016 tax season. The Examiner.com article explains the benefits of such a heater, not just for saving money in bills, but also claiming a federal tax credit. Homeowners can save 30% of the purchasing cost, the author says.
The types of systems and how they work are explained. Homeowners often choose direct systems and indirect systems. The differences are explained in more detail, but the important thing is the roof is exposed to direct sunlight for a long enough period of time. Which one is chosen depends on climate, the article reveals, and homeowners also have the expense of conventional water heaters needed at night and on cloudy days.
Cost and factors are discussed. Ellis says installation can cost as much as $10,000. Size, complexity, and quality impact cost while the amount of maintenance needed does as well.
The 30% tax credit has no cap, the author states. This applies to solar water heater systems installed between 2009 and 2016, which have been Solar Rating & Certification Corp certified. Eligibility factors include at least half the home’s energy coming from the sun. Ellis reveals the form needed to take the energy tax credit and makes other suggestions.
Overall, these heaters can have cost-saving benefits. Ellis outlines some of these which have been released by Energy Star. Some U.S. Department of Energy estimates are included as well. Although annual inspections are needed, Ellis says, the new water heaters can last up to 20 years.
For claiming the solar water heater tax credit, the author recommends filing with an online tax service. They ask the right questions to fill out the right forms and get the right deductions and credits. Links to their free tax refund calculator and a resource about importing W-2 information are provided as well.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Internet Tax Connection
945 East 8th Street Suite A
Traverse City, Michigan 49686